Priority Token Guide to an STO: Issuance Platform
More and more companies are taking advantage of asset tokenization and raising funds through selling security tokens that represent a stake in their businesses. Security Token Offering, as opposed to the Initial Coin Offering, is a compliant and secure fundraising technique that allows both founders and investors to protect their interests and ensure mutual profit.
One of the essential steps in getting your STO off the ground is issuing your tokens. In this article, we will give you a brief guide on what to focus on and what to look out for when issuing your security tokens.
Why Do You Need Issuance Platforms
When it comes to issuing tokens, you have to deal with several challenges simultaneously. The token generation, providing Know Your Client (KYC) and Anti Money Laundering (AML) services, ensuring legal compliance – these are some of them. Security token platforms can simplify and speed up this process. By leveraging them, you will be able to avail your tokens on the market as soon as possible.
A security token platform is a service that does all the cumbersome work for you, allowing you and your team to focus on developing your product, negotiating with partners, going on a roadshow, etc. These platforms integrate a set of features that basically include:
- Investor management;
- Legal compliance;
- Anti-money laundering.
This is a basic starting kit that will automate the primary token issuance for you and provide all the necessary resources for transferring the tokenized assets to the market.
The other crucial factor is exposure. For a long time, equity investment was reserved for the privileged few, who could afford to contribute at least thousands or even millions of dollars. The other option was to pool your funds as an investor team, which is also tricky and complicated. But security token offerings have changed it for the better. Intermediaries and brokers are now eliminated, and everyone who is interested in investing in tokenized securities can do it even with small resources. And with a security token platform, projects can reach a wider range of investors, which enables them to achieve their funding goal within a short period of time.
Security Token Platforms List
There is a number of security token issuing platforms around, and we recommend you to do your own research before choosing to partner with one of them. That’s why we won’t give you any advice on certain platforms – only a list of the most renowned ones.
Polymath is an STO platform that aims to help the conventional financial securities integrate with the blockchain tech.
This STO platform offers a flexible end-to-end solution for companies looking to issue security tokens.
Swarm fund is a blockchain-based STO platform that primarily operates on the SRC20 protocol that allows users to tokenize any form of assets.
This security token exchange platform offers the users a wide range of options and serves as an exchange, a cryptocurrency, a bond, and an exchange-traded fund share. Users can transfer any form of an asset on the platform, including fiat money, listed securities, and tokens.
Harbor is a decentralized protocol that provides a worldwide platform for issuing security tokens. The platform also offers a trading tool for digital assets.
This was a short introduction to the world of security token issuing platforms. They can facilitate the process of tokenization, but be sure to use them wisely and compare different options before making a decision.
Have you had any experience with such platforms? Share your opinion in the comment section!
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